Retailer-Supplier Relationship in Hong Kong: Asymmetry, Power Play, and the Need for Supply Chain Management

Abstract

This study investigates the characteristics of retailer-supplier relationship in Hong Kong, identify problems in it, and suggest ways to remedy them. We will demonstrate that Hong Kong’s retail industry was and is dominated by small and medium sized retailers. However, small retailers in Hong Kong have not sufficiently adopted new retail technologies to manage their supply chains. This situation is undermining the efficiency of Hong Kong’s retail industry. We recommend information systems providers, the management of small retailers, and suppliers to take steps to improve supply chain efficiency for small retailers. Information systems providers can help through designing affordable implementation and common modules. Suppliers in Hong Kong can actively build network, cultivate trust, and equip themselves with advanced information systems. Small and medium sized retailers in Hong Kong need to invest sufficient resources to implement retail information systems.